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Ramsey will evolve through citizen -driven, collaborative processes that respect the balance and connectivity <br />between its unique urban, rural, and natural environment for current and future generations. <br />2. Minnesota Housing — Start Up Program <br />This first-time homebuyer program is meant to promote affordable interest rates and help homeowners <br />better tackle their down payments and closing costs. Qualified first-time homebuyers must have a credit <br />score of at least 640, they must meet certain income limits and must be able to obtain a mortgage from a <br />lender. Borrowers must also attend a homebuyer education course. <br />In order to be eligible for this program, residents must be first-time homebuyers, have a credit score of at <br />least 640, and meet the income requirements. <br />When we would use this: The City of Ramsey does not maintain this program, but believes it to be a <br />great opportunity for potential homebuyers. Because so much of the City has naturally -occurring <br />affordable housing, the City expects to see first time homebuyers purchasing properties in Ramsey. This <br />type of program is an excellent tool to point those types of residents towards. Additionally, this type of <br />program supports low-income individuals, and supports the City of Ramsey's goal and mission to provide <br />lifecycle housing options and affordable housing options. <br />3. Minnesota Housing - Step Up <br />This is a loan can be used for home purchase or to help homeowners refinance The loan is meant to <br />promote affordable interest rates in the state of Minnesota. The monthly payment portion of this <br />Minnesota Housing program is available to help buyers afford closing costs and the down payment of a <br />home purchase. The loan allows borrowers to reduce or eliminate mortgage insurance costs. Qualified <br />borrowers need to have a credit score of at least 640, they must meet program income limits and in some <br />cases, borrowers must attend homebuyer education courses. <br />Summary: <br />• Loan can be used for home purchase or refinancing. <br />• Must have a credit score of at least 640. <br />• Must meet income limits. <br />When we would use this: The City of Ramsey does not maintain this program. <br />4. Minnesota Housing - Deferred Payment Loan <br />This loan is meant for first-time homebuyers to help ease the cost of home ownership. There are two <br />loan options, a deferred payment loan and a plus loan. The deferred payment loan starts at $5,000 and up <br />to $7,500. The maximum for the plus loan is higher, up to $10,000 for those borrowers who fit target <br />criteria. Minimum credit score for qualified borrowers is 640. The borrowers must also attend a <br />homebuyer education course. The loan term is equal to the first mortgage and has 0% interest - the loan <br />is repaid when the property is sold, no longer the homestead of the homeowners, or the loan is <br />refinanced. <br />Summary <br />• Must be first-time homebuyers <br />• Two loan options — can borrow from $5,000 to $10,000 <br />• Minimum credit score of 640 <br />City of Ramsey 2040 Comprehensive Plan Update <br />Housing Plan <br />Page 15 of 23 <br />